Consumer Decision Making

Three Perspectives on Decision Making

Decision

making perspective High involvement decisions Low involvement decisions Experiential perspective Behavioral influence perspective

Decision Making Perspective High Involvement Decisions

Problem Recognition Extensive Search Extended Alternative Evaluation Complex Choice Acquisition Evaluation

Decision Making Perspective Low Involvement Decisions

Problem Recognition Limited Search Minimal Alternative Evaluation Simple Choice Processes Acquisition Evaluation

Experiential Perspective
Problem Recognition (affect driven) Search for Affect-based Solutions Alternative Evaluation (comparison of affect)

Choice Acquisition (affect-based) Evaluation

Behavioral Influence Perspective

Problem Recognition (results from discriminative stimulus) Search (learned Response) Choice (behavior results from reinforcers) Acquisition Evaluation (self-perception process)

Initial vs. Repeat Purchases

Initial

purchases Tend to require more extensive problem solving

purchases Tend to require limited problem solving, sometimes habitual decisions

Repeat

Basic Decision Making Process

Problem/Need Recognition
Information Search

Evaluation of Alternatives
Purchase Post-Purchase Evaluation

Problem/Need Recognition
Consumer

recognizes a gap or discrepancy between his/her current state and his/her desired state.

Information Search
Deliberate

attempt to gain knowledge about a purchase decision; goal is to reduce uncertainty. Internal search Retrieve information from long term memory External search Gather information from external sources, e.g., ads, media, friends, stores

Determinants of External Search

Evaluation of Alternatives
Occurs

either separately or in conjunction with information search. We rely on internal processes to help us organize the evaluation process. Consideration (evoked set) Decision rules (heuristics)

Consideration Set

Decision Rules
Strategies

used by consumers to guide decision making. Some decision rules use product characteristics to guide decisions. Compensatory Noncompensatory Some decision rules rely on stored information in consumers memories to guide decisions.

Compensatory Decision Rule

Select

the best overall brand

Consumer evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. The consumer chooses the brand with the highest score.
A

compensatory model because a positive score on one attribute can outweigh a negative score on another attribute.

Noncompensatory Decision Rules

Conjunctive

Decision Rule

Consumer sets a minimum standard for each attribute and if a brand fails to pass any standard, it is dropped from consideration.
Reduces

a large consideration set to a manageable size. Often used in conjunction with another decision rule.

Noncompensatory Decision Rules

Disjunctive

Decision Rule

Consumer sets a minimum acceptable standard as the cutoff point for each attribute--any brand that exceeds the cutoff point is accepted.
Reduces

large consideration set to a more manageable number of alternatives. Consumer may settle for the first satisfactory brand as final choice or may use another decision rule.

Noncompensatory Decision Rules

Lexicographic

Decision Rule

The consumer ranks the attributes according to importance and then selects the brand that is superior on the most important attribute.
If

one brand ranks sufficiently high on just one attribute, it will be selected regardless of how it scores on other attributes.

Affect-Referral Rule
Synthesized

decision rule

Consumers maintain overall evaluations of brands in their long term memories. Brands on not evaluated on individual attributes but on the highest perceived overall rating.

Frame of Reference
Another

way in which consumers evaluate information is the frame of reference from which s/he subjectively evaluates messages related to a decision problem. Percent lean vs. Percent fat Sale vs. Clearance

Purchase Decision

Post-Purchase Evaluation
Consumers

evaluate purchases during consumption process. possible outcomes. cognitive dissonance. behavior.

Three

Postpurchase Complaining

Outcomes
Actual

product performance matches prepurchase expectations Neutral Feeling

Outcomes
Actual

product performance exceeds prepurchase expectations. Positive disconfirmation of expectations Satisfaction

Outcomes
Actual

product performance is below prepurchase expectations. Negative disconfirmation of expectations Dissatisfaction

A Continuum of Satisfaction

Dissatisfaction

Satisfaction

Delighted

If dissatisfied.
Alternative

actions Do nothing Avoid seller/brand in the future Negative WOM to friends Seek redress of problem from seller Complain to outside agency

Decision to complain...
Is

based on: Level of dissatisfaction Importance of decision/purchase Costs/benefits of actions Personal characteristics Attribution of blame

Managerial Implications Related to Consumer Decision Making

Understanding

decision making process enables marketers to assist consumers along decision pathway.
Offer products that meet needs/wants Advertising Making information available Making product available Follow-up sales calls, good service